Fidelity Investments launched its crypto service in 2021, marking its entry into digital assets for its 40 million individual clients. While cryptocurrency remains a high-risk, volatile investment, Fidelity Crypto simplifies the process by offering a curated selection of assets—ideal for beginners but limited for advanced traders.
Pros of Fidelity Crypto
1. Low Trading Fees
- Charges a spread of up to 1% per trade, competitive against platforms like Coinbase (1%–4% fees).
- No commission fees, reducing overhead costs for active traders.
2. Seamless Funding
- No minimum deposit; crypto purchases start at $1.
- Integrates with existing Fidelity brokerage/cash management accounts.
3. Trusted Brand Reputation
- Backed by Fidelity’s established financial services, appealing to cautious investors new to crypto.
Cons of Fidelity Crypto
1. Limited Cryptocurrency Selection
- Only Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) available—far fewer than competitors like Crypto.com (350+ coins).
2. Restricted Functionality
- No staking rewards, external wallet transfers, or decentralized finance (DeFi) access.
- Trading pauses briefly daily (12–1 AM ET).
3. Geographic Limitations
- Available in 38 U.S. states (e.g., CA, NY, TX; excluded: AK, CT, HI).
How Fidelity Crypto Compares
| Feature | Fidelity Crypto | Coinbase | Robinhood Crypto |
|-----------------------|--------------------------|-------------------------|------------------------|
| Fees | 1% spread | 1%–4% | $0 trade fee |
| Crypto Options | 3 | 200+ | 15+ |
| Staking | ❌ No | ✅ Yes | ❌ No |
| Wallet Transfers | ❌ No | ✅ Yes | ❌ No |
👉 Explore crypto trading platforms for more alternatives.
FAQs
1. Is Fidelity Crypto safe?
Yes—Fidelity employs robust security measures, including cold storage for digital assets. However, crypto itself remains volatile.
2. Can I transfer crypto out of Fidelity?
Not currently. Fidelity plans to add this feature but hasn’t announced a timeline.
3. Who should use Fidelity Crypto?
Beginners or Fidelity clients seeking a simple way to invest in Bitcoin, Ethereum, or Litecoin. Advanced traders may prefer exchanges with more features.
Final Verdict
Fidelity Crypto excels in accessibility and low fees but lags in asset diversity and functionality. For investors prioritizing trust over flexibility, it’s a solid starting point.
👉 Compare top crypto platforms to find your best fit.